The CIO in the Digital Age: Nine Things You Need to KnowThe Connected CIOMoving From Iteration to Innovation

CONNECTED CIO

PART 1 IN A 3-PART SERIES

6:00 a.m.: Your phone alarm sounds. You ask Alexa to tell you the weather and you use Google Maps to check the traffic—red roads everywhere, so you call an Uber. The carpool lane will be faster. On the way to work, you submit a vacation request via the company app. You’re running late for your meeting, so you attend through a digital conferencing system.

We live in a digital world. New and developing technology has changed the way we work and live. Companies have had to transform to stay relevant due to changing technology and expectations around productivity, workforce and data. But digital is now the norm and using technology to boost productivity is the status quo. With everyone investing heavily in digital transformation, how can leaders set themselves apart?

The World is Digital

organisations say that digital technologies are now a core aspect of their technology foundation, but

that also means that being digital is no longer a differentiating advantage—it’s

simply the price of admission.

– Accenture1

4 5out of

As we move into the next phase of digital transformation, digitally mature organizations are going from reactive to predictive. Companies have digitized their operations, back-end systems and online channels, and now are focusing on interconnected solutions and the new data that accompanies it. Successful transformation will mean anticipating the needs of customers using the analytics, cloud, mobile and social technologies they’ve adopted—and emerging technologies such as the Internet of Things (IoT), blockchain, and artificial intelligence (AI).

Intelligent and innovative customer experience (CX) is the goal. Our digital world of instant gratification, social interaction, and interconnected data provides a never-ending stream of opportunities to use technology to meet customers where they are, at any moment.

At Dell Technologies, we believe the next phase of digital transformation is a shift from iteration to innovation: using existing and emerging technology to learn more about customers and develop new business models as a result. According to Dell ESG Research Emerging Technologies Final Results; 9 out of 10 businesses report technology enables business transformations, 50 percent say it is a critical enabler.

“Technology has been a driving force in business transformation for years, but the pace at which new technologies are launching has reached its fastest speed. Now is the time to create efficiencies and differentiate through the customer experience.”

– Brian Glynn, Chief Revenue Officer, IDG Communications

Use Digital-First Strategies to Activate Data in New Ways

Our research with 4,300 business leaders told us that to lead in a digital future, everyone in an organization must embrace the change. And to become a digital leader requires more than simply leveraging the latest technologies; it requires prioritization and focus. Leading organizations brought about a change in mindset, environment and skills to create a solid culture around data and automation. Then they adopted emerging technology to stay relevant to their customers.

When a recent Dell Technologies–sponsored study by ESG asked digital leaders to name the top benefits of implementing IoT initiatives, 56% said “better insight into our customers’ needs, preferences or behaviors”; 49% said “faster time to customer issue resolution”; and 44% said “increased customer engagement with our products, services or brand.” Organizations also implemented AI or machine learning (ML) to improve customer experience.

The hottest technology for all CX is cloud-based, which took up about 49% of the total in global tech investments this year.2 The cloud allows organizations to merge data silos and ultimately improve customer experience by way of new insights. In fact, in the Technology Vision 2019 report,3 Accenture indicates that success will be determined by an organization’s ability to “deliver personalized realities and experiences for customers, employees and business partners.”

46%Faster time to customer issue resolution

45%Better insight into our customers’

needs, preferences or behaviors

42%Ability to provide a better and more di�erentated customer experience

39%Faster time to customer task completion

38%

38%Increased customer engagement

with our products, services or brand

36%Increased average transaction size

or total-spend-per-customer

Development of new innovative products and services

Customer Facing AI/ML Initiatives Aimed At Improving CXBetter insight into customers’ preferences and an improved ability to resolve issues faster will help organizations di�erentiated CX

Question text:Which of the following bene�ts has your organization realized (or do you expect it to realize) as a result of your customer facing AI/ML initiatives? (Percent of respondents, N=237, multiple responses accepted)

of data analytics projects will relate to CX by 2020.

-GARTNER5

>40%of transformation leaders appoint executives and create a separate budget to drive innovation (including CX innovation).

-ZDNET7

84%of CX initiatives will use IT by 2022, up from half in 2017.

-GARTNER6

2/3

"The performance gap is huge between companies that take a more comprehensive and customer-centric approach to digital enterprise

transformation than those that focus solely on cost reduction."

-YANG SHIM, AMERICAS ADVISORY DATA AND ANALYTICS LEADER FOR FINANCIAL SERVICES, ERNST & YOUNG4

For CIOs looking to become digital leaders, this is the best chance at higher revenues in the long run. Investing in technology will allow organizations to innovate around CX, advancing almost all areas of the business, from supply chain management to a differentiated omnichannel customer experience:

Four Imperatives for the Connected CIO

Digital transformation of your products, services and operations can help competitively differentiate your organization to improve the experience for your customers. Using higher-performing components, harnessing the power of data analytics and continuously improving the technology ecosystem are all ways of becoming a truly digital business.

Many business imperatives will drive your strategic IT initiatives. CIOs can follow four imperatives to prepare for the next wave of digital transformation:

A Job for the Connected CIO

Never before has there been such an opportunity to position IT as the companywide catalyst for strategic innovation. CIOs must become

digital navigators that create synergy between business and technology. Those who can achieve this goal are

Connected CIOs, who can use a disruptive mindset to power and connect the entire organization—

not just their corner of IT.

Implementing technology that can track, measure and respond to key shifts in consumer behavior—including data analytics, cloud computing and IoT—are critical to success. Internally, the Connected CIO will guide the way, fostering a new generation of experience architectures, tools and techniques to accelerate the time-to-value with data. Externally, the Connected CIO will be instrumental in connecting with customers.

Increase your business agility by using a multi-cloud strategy

Create new value through the Edge

Transform engagement through workforce modernization

Meet sustainability goals through responsible IT asset disposal

of CIOs who do not empower their IT product teams to enable digital innovation, disruption and

scale will fail in their roles.

– IDC8

75%

Get to Innovating, Faster

Regardless of industry, size or experience, strong partnerships can be a differentiator for any organization and can have a major impact on how far and how fast you can move forward. We need solutions that work together to increase flexibility and agility as well as create seamless interactions among customers, employees and businesses.

At Dell Technologies, we’ve prioritized strengthening our partnerships with the best companies across industries. Our mission is to help solutions work together. From infrastructure to workforce modernization, we provide support from end to end. You need a partner who understands your business and your imperatives for change. We created Dell Technologies to provide not only the products and solutions, but also the services and expertise to help make business transformation happen and make it real for you. One partner, purpose-built for your digital future.

Partnerships

Dell Technologies Can Deliver Transformation in Ways No Other Company Can

Read parts 2 & 3 of this report:

Part 3 Proven Guide for Implementing a Digital-First Strategy

Part 2 Four Imperatives for Competing in a Market of Speed

DellTechnologies.com/ConnectedCIO

© Dell Technologies 2019 - 10.31.19

Sources: 1. Accenture Technology Trends Report, 2019, http://https://www.accenture.com/us-en/insights/technology/technology-trends-2019. 2. https://www.reuters.com/brandfeatures/venture-capital/article?id=115147, 3. https://www.accenture.com/us-en/insights/technology/technology-trends-2019, 4. https://www.zdnet.com/topic/digital-transformation-a-cxos-guide/, 5. https://www.gartner.com/en/newsroom/press-releases/2018-02-19-gartner-says-25-percent-of-customer-service-operations-will-use-virtual-customer-assistants-by-2020, 6. https://www.gartner.com/en/newsroom/press-releases/2018-02-19-gartner-says-25-percent-of-customer-service-operations-will-use-virtual-customer-assistants-by-2020, 7. https://www.zdnet.com/article/to-succeed-at-digital-transformation-focus-on-customers-and-innovation/, 8. https://www.businesswire.com/news/home/20181031005201/en/IDC-Reveals-Worldwide-CIO-Agenda-2019-Predictions. IDC: https://www.businesswire.com/news/home/20181031005201/en/IDC-Reveals-Worldwide-CIO-Agenda-2019-Predictions

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